Subject category:
Strategy and General Management
Published by:
RSM Case Development Centre
Length: 13 pages
Data source: Published sources
Abstract
This case explores the situation of M-PESA within the Kenyan mobile money market, illustrating the rapid growth and maturation of mobile money within the domestic market and the impact of rapid international diffusion. M-PESA has enjoyed a decade long period of success within the Kenyan market. It has become by far the dominant local player in the mobile money industry, and occupies what some in the market term a virtual monopoly position. This success may have prompted some lethargy on the part of the company as it has basked in its obvious success. Because of its market dominance, there are increasing comments about a monopolistic position. A recent financial consultant's report even suggested spinning off M-PESA from the parent company Safaricom. The issue has received a great deal of press attention, both local and international. With arguments for and against divestiture, the subject was becoming increasingly sensitive.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2017.Geographical setting
Region:
Africa
Country:
Kenya
Featured companies
M-PESA
Employees:
201-500
Turnover:
USD 253 million
Industry:
Mobile money industry
Safaricom
Employees:
5001-10000
Turnover:
KES 240,3 billion
Type:
Public company
Industry:
Telecommunications
Featured protagonist
- Pauline Mwangi (female), Director of Operations
Subject category:
Strategy and General Management
Published by:
RSM Case Development Centre
Length: 8 pages
Data source: Published sources
About
Abstract
This case explores the situation of M-PESA within the Kenyan mobile money market, illustrating the rapid growth and maturation of mobile money within the domestic market and the impact of rapid international diffusion. M-PESA has enjoyed a decade long period of success within the Kenyan market. It has become by far the dominant local player in the mobile money industry, and occupies what some in the market term a virtual monopoly position. This success may have prompted some lethargy on the part of the company as it has basked in its obvious success. Because of its market dominance, there are increasing comments about a monopolistic position. A recent financial consultant's report even suggested spinning off M-PESA from the parent company Safaricom. The issue has received a great deal of press attention, both local and international. With arguments for and against divestiture, the subject was becoming increasingly sensitive.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2017.Geographical setting
Region:
Africa
Country:
Kenya
Featured companies
M-PESA
Employees:
201-500
Turnover:
USD 253 million
Industry:
Mobile money industry
Safaricom
Employees:
5001-10000
Turnover:
KES 240,3 billion
Type:
Public company
Industry:
Telecommunications
Featured protagonist
- Pauline Mwangi (female), Director of Operations
Related
Subject category:
Strategy and General Management
Published by:
RSM Case Development Centre
Length: 8 pages
Data source: Published sources